Barely hanging in there and strugling...

[ea1776]

congratulations on quitting smoking!

i would definitely cancel the cable and find other ways (internet, books, walk in the park, etc) to be entertained. Sounds tough, but it's quite easy to get used to.

if i were in your shoes, I'd look at making some serious (temporary) sacrifices. this will be painful and will likely require a huge change in your mindset.

also, is it possible for you to shop around for another job where you could possibly make more cash?

can you have a garage sale to raise cash?

[doxie]

5. Discuss with roommate sharing food (your current bill seems high) or begin to cook a week at a time to reduce cost. Track spending and put any money under $120 into the new account.

I'm just curious, what do you think is a reasonable amount to spend on food? $120 a month is only $27 a week. Doesn't seem to me like the place he needs to be cutting down.

[cypher1]

Adding a renter (+300 to 400) and selling the car (+281+lowering insurance) for a beater, plus lowering cable package, and cell is what I'd focus on first. You could potentially free up 800+ a month to tackle debt/repairs down the road. With this market, selling your place may cost even more for moving, let alone finding a buyer. So given your house costs is costing 50% of monthly net income, renter/car factors are your best bet, other than a part time job.
PS congrats on quiting smoking

[Hector]

I am sorry that you are going through this.
Finding a room-mate, getting basic cable, converting to lowest cell-phone plan, and looking for new and/or second job might be a good start.

Also, you are planning to pay 12k more towards car. Why not sell it and buy a used car worth 5k or so? It should cut your monthly payments to less than half. In addition to that you will have 1k as an your emergency fund.

Its good that you are a mechanical engineer, but nothing is wrong in getting a part-time job. I personally know people who have more than an engineering degree. For sure, they didn't feel small in doing labor gigs when needed.

[nick__45]

Keep your car and take care of it. I can't tell which gender you're but if you're a guy than learn how to take care of it yourself. You can do so if you're a girl but that is where making sure you date someone is isn't stupid come in. The book may say your car is worth 13k but the dealer will only give you 10 for it. Then he'll be glad to sell you a 5k car for 7k and arrange a low monthly payment for the next 5 years. Keep your car, treat it well and it will treat you well. Plus, you do deserve this nice car since you work hard. And keep it for the next 10 years minimum.

I would do something about that condo fee if I can. The people who rent with before, can you bring them in to share rent this place. I can see bringing one person and get 300 cash for it. Utility may go up for 50-75 bucks but we guys could do a half utility deal so everyone is conversing. I know it's hard to conserve because we're not taught to do so from the young age but it's your money, you can be dirt cheap with the lights and heat and everything you want. Find someone with Costco membership and get those efficiency bulbs and watch your utility bills goes down by 40 dollars each month.

If I may recommend, you need to eat more. Unless you're eating out a lot and only counting your grocery bill, you are barely putting nutrient in your body with 120 a month. We spend about 500 in food each month for 2 people. Food is the only thing we don't skimp on. No we're not fat slob or even big bone. We value eating healthy and eating right. We do shop at places like BJ and Costco as well as small markets.

[nick__45]

If your parents don't mind you're living with them, there is no shame in it. The true shame is to loose your shirt on a house or your job and can't feed yourself or family.

[nick__45]

Its good that you are a mechanical engineer, but nothing is wrong in getting a part-time job. I personally know people who have more than an engineering degree. For sure, they didn't feel small in doing labor gigs when needed.

I have a part time gig on Saturday morning, working at a farmer market doing manual labor and selling products. I am more proud of that $10/hr than I am with my $51.4/hr gig that pays all the bills around here. And you know what, my low paying job makes me a better person because I treat people better than most of my white collar co-workers.

[nick__45]

Contact Dave Ramsey! He will help you. Yes, he's a financial guy, but he's a Christian and just wants to help people out of financial messes! The forum says I can't post any links until I have a certain number of posts, but please google Dave ramsey and call into his show!!!

The problem with super dave is that his membership isn't free and its forum is not nearly as active as this one. I am not sure what there to gained from joining for 9/month beside another bill. I don't want to get in debt to learn about getting out of debt.

[jimmyrules712]

Your biggest problem is the home. I'd have to say for sure either find a roommate (iv'e heard of people using craiglist for that if you can't find anyone through friends) or sell your condo and buy something cheaper or rent a cheap apartment. Your basically paying $1100 for the home, which is over half your income and not "living within your means". Try to get to where your home costs are like $600 or less. - $500 potential savings

I would definitely look at canceling TV, but keep internet. You can get netflix for $8 a month for tv shows to watch until you get ahead.- $50 potential savings

I understand the frustration of the idea of selling your car for so much less then you paid, but that's just going to have to be a mistake you learn from (never buy a car new). For $5k you can get a car that will be reliable and will only require liability insurance. - $200 potential savings.

My estimates may be optimistic but there's how you could possibly save $750 per month.

Then if you can find a way to bring in extra income like others suggest you'll be sitting pretty.

Once you make those adjustments to your expenses and income save up $1000 for emergencies (those flat tire / broken heater situations). Then pay off the credit card debt. Then expand the emergency fund savings to 3 to 6 months worth of expenses.

If you do all of that, and maintain those habits, you'll probably be financially secure for the rest of your life.

[Scanner]

This is just a side note for an "expense cutter" that I am doing at my new house.

Basic phone service for a landline is $15/month. This only local service - no toll or long distance. You then buy one of those long distance cards from BJ's/Sam's Club for $20.00 and you get like 900 minutes. It's a little bit of an extra pain to dial into their 800# but they let you put in speed dial numbers. I only have 2 numbers, my parents one, that I call regularly.

Wi-Fi at public places or work for internet.

I then carry a Tracphone for my cellphone usage. . .cost. . .about $80.00 every 6 months. I only use that for work communication - no pleasure talking.

And yes, I am doing "No cable" at my new house too - to offset some of my child support. Netflix is the substitute.

Americans spend way too much on communications IMO.

[packerfan]

Time to figure out how to increase income. Can you do any freelance work? Pick up odd jobs on the weekend, work overtime, etc. You could cut things like cable, but my preference would be to pick up some extra cash. Do you have things you can sell on ebay to get out of debt?

[Mr Nice Guy]

I have been on financial forums for a short time now, but I see a trend of people who come on here, and in their first post, ask for help. Yet never seem to come back to give us situational reports or updates. At first I think it is stupid, but the more people read about real life situations, the better. Each thread has some gems of knowledge and a lesson to partake.

[cschin4]

1. Keep the Car - You aren't going to gain anything to trade it in, get another, etc. You need transportation to work. Let this be a lesson not to buy a car without making sure it is truly affordable.
2. Living check to check isn't fun. Wanting to have the house, car, etc all comes with a price. Sometimes it is much better to live a much smaller lifestyle and have money in the back and a cushion. This is also a good lesson to learn.
3. House - Roommates are not necessarily that easy to find. And, there is a difference between renting an apt together and having someone boarding in your house. The relationship is much different. So, not sure I would pursue that option.
4. You are young, you have time on your side. Keep the house, but realize it comes with a price. And, since you bought it and the car, now you need to "work that job". Take as much OT as you can get and/or a second job and work as hard as you can and aggressively pay off your car. Once you do that, you will have a cushion and I think you will be able to get back on track.

[cschin4]

As for dental, etc. Some things you might not be able to do now. If you really are in need of immediate dental care, look for the local dental college and go see if they have discounted rates. Otherwise, there are things you probably have to put off.